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Vonage Gets Stay on Injunction

The Internet phone shop gets temporary relief from a decision to bar it from signing up new customers.
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Updated from 2:09 p.m. EDT

Vonage

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has received temporary relief from a federal judge's order barring it from signing up new customers.

The Internet phone company said Friday that a federal appeals court in Washington, D.C. had issued a temporary stay to an injunction issued earlier that day by U.S. District Court Judge Claude Hilton. The stay means Vonage can continue signing up customers for its service until the appeals court can hear the company's request for a permanent stay.

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Hilton's injunction on Friday is related to a patent infringement battle between Vonage and rival

Verizon

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. A jury last month found that Vonage's service infringed upon Verizon's patents. Hilton's injunction on Friday, which barred Vonage from using the patented technology for new customers, was less harsh than one he issued last month, which would have barred the company from using it for new and existing customers. The earlier injunction essentially would have shut down Vonage's business.

Vonage shares lost 25 cents Thursday to close at $3.37. U.S. stock markets were closed Friday in observance of Good Friday.